If the seller has not already talked with the lender, advise the seller to write a hardship letter and FAX it to the lender. Before the lender will consider your offer, the lender will want assurance that the seller has no assets to attach. In addition, depending on the lender, it may also want documentation such as:

• Preapproval letter from your lender.

• Estimated certified closing statement.

• Certified closing instructions.

• Title policy commitment / preliminary title report.

• Evidence of your earnest money deposit.

• Profit and loss statement, if you are self employed, and last three month's of bank statements and / or 2 years of tax returns.

• List of recent comparable sales in the neighborhood.

Your bargaining power will rest on the comparable sales and condition of the real estate market. Lenders generally use an automated appraisal service, which may not reflect the true market valuein the neighborhood. Be ready to point out why factors such as busy thoroughfares, close proximity of railroad tracks or high number of neighborhood foreclosures affect the value, and use those reasons to justify your asking price.